Sweet Crude

August 6, 2013

Mining sector requires presidential intervention

MAN hails Police over arrest of illegal Chinese miners in Zamfara

Mining

By Emma UJAH

Mr Sunday Ekosin is the President of Progressive Miners Association of Nigeria, which has been in the Vanguard of enthroning best mining practices in the country. In this interview, he expresses confidence that with the right polices and personal intervention of President Goodluck Jonathan in the industry, mining would take the centre-stage of the nation’s economy. Excerpts:

What impact has the Progressive Miners Association made on the mining industry since its birth in 2009?

The Progressive Miners Association which started in 2009, was established with a clear philosophy of ‘empowering miners through mining renaissance’, essentially, the lack of credible mining Association that is wholly devoted to caring for the miners in Nigeria brought about the Association. PMEA was established in response to the need for a collective lobbying organization that would articulate the interests of the indigenous miners. By a great extent, we have vigorously pursued these sets of objectives.

Mining in Nigeria has been largely docile, what is responsible for this?

After decades of mining operations in Nigeria, it is indeed unfortunate that we have still not being able to use mining as a diversifying agent in our economic transformation. Huge benefits deliverable from mining are yet untapped and to major stakeholders like me are very pained.

*mining pits

However, it is critical that we build a sustainable and well respected industry made up of globally competitive mining and associated businesses. This only comes if we earn this respect and support. To achieve this we need to achieve:

Development of small and medium scale indigenous mining sites and plant across the entire country based on a developed mining module such that will ensure health, safety and environment practices that ensure our people remain safe and that presence of mining activity is supported by enforceable regulations.

Have patriots to develop a well-thought-out community engagement, delivering operations that exist with the support of, and benefit from mining activities in a sustainable manner.

Strong stakeholders’ relationships to ensure rapid sustainable development of the sector. Currently, the frosty relationship that exists amongst us leaves so much to be desired.

Could these be the reasons you have consistently called for a standing Presidential Committee on mining?

Yes, a presidential committee with a clearly well thought out deliverables for both immediate and long term benefits. Among these, is the creation of  two million direct jobs, positive engagement of our teaming youth in mining development, establishing privately operated small mines and plants across the six-geo-political zones of this country, ensure that our mining licenses are valuable nationally and internationally through carefully rejuvenation of license certifications etc. Mining remains major employer in many communities and provides economic benefits

It means that rural communities where these mines are located will attract developments accrued by mining activities in good roads, clinics, bursaries and rural development projects, giving communities the power to create their own destiny. This will also contribute towards the alleviation of poverty. The Presidential Committee will equally focus attention on economic development in grassroots- level empowerment and upliftment, hence addressing the stagnation of development initiatives that sometimes emerge because of logistics and bureaucratic challenges in government.

Why are local investors not investing in this sector despite the high return on investment?

The biggest problem is the inability to bridge the gap between wealth expectations (i.e. Mining seen as sudden wealth able to meet all local needs) and reality of low margin mining in global industry Mining Practices. Many investors coming into mining have the perverted views of a ‘gold mine’ investment, and without doing due diligence and interacting with major stakeholders particularly with experience, they get out as fast as they get in.

The mining business does not change – no new perspectives – we may have young people coming up in mining companies but ‘they are talking old” mining is profitable to the extent of proper management of financial investment, technical soundness and prudence management.

Why do your members complain about licence revocation and re-assignment at the Mining Cadastre Office?

Let me start by laying the foundation and setting the records straight, as at this very moment, the only law in Nigeria, regulating the operation of the mining Cadastre Office is the Minerals and Mining Act 2007, to operate therefore outside of this Act is to operate illegally.

As a private organization of Nigerian miners we have received several complaints emanating from the MCO in the administration of mining titles.  Several of these cases are in court and others are with security agencies across the country for investigation. These developments are unfortunate but that is the current situation. You can only imagine the situation of mining both now and in the near future what will become of mining when this fundamental aspect of mining is enmeshed in the conflict of confidence.

As the Bible says “what can the righteous do when the foundation is destroyed”. This is one reason, some patriots like me keep crying out to Nigerian leaders and well-meaning statesmen to plead with Mr. President to inaugurate the proposed Presidential Committee to tackle these multifaceted problems impeding mining development in Nigeria.

The provisions of the law on the revocation of licences are very clear, Part II of the minerals and mining Act 2007, sections 11 to 14 states:

“11. A mineral title shall become liable to revocation where the holder thereof has failed to pay the prescribed fees.

12.  In case of default of payment of the annual service fee due to the Mining Process for Cadastre Office, the Mining Cadastre Office shall give a thirty-day written default  Revocation notice to the defaulting party and, if payment is not effected during that period, the  Mineral Mining Cadastre Office shall record the default and revoke the mineral title

13. The amount of the fees payable under section 10, administration and Determination modalities for their payment shall be determined in the regulations issued by the Minister.

14.  Any notice required to be sent by the Mining Cadastre Office to an applicant Notice to for, or holder of a Mineral title shall be sent by courier service or register Mail to Applicant. The last known address in Nigeria of the mineral title holder or given in person to an Authorized representative of the applicant or holder of the mineral title in Nigeria or published in the Gazette. The notice shall for all purpose be sufficient notice of the subject matter of the applicant for or holder of a mineral title.”

The law specifies that a title holder be officially notified in writing and by registered mail or by courier, giving thirty days within which to rectify any query raised in connection with a title. After all these might have been exhausted and the title holders still fails in his obligation, the final stage is to now gazette the defaulter before final revocation.

The reason for this long procedure is to avoid miscarriage of justice in minerals title administration. Unfortunately, the processes and procedures are daily being abused and circumvented. The issuance and revocation are done in violation of the ACT, hence all these protests, litigations and hues and cries.  The sad situation is that for any mineral title revoked all that is required in Nigeria is to make newspaper publications, not minding the damages such action might have on the original title holders in terms of time and money spent in reconnaissance, community development project executed, cost of title acquisition and goodwill.

No matter the threat to my life as a person by the uninformed who are uncomfortable with my advocacy for the right thing to be done in the mining sector in Nigeria and all the name calling, maligning and exclusion from my legitimate rights, I have resolved to stand for truth, equity and justice and to tell all agencies of government saddled with the responsibilities of regulating this sector to stand up to their responsibilities. As a leader, I must stand in defense of my people.

Too many things are going wrong in the Nigeria mining sector; hence the sector remains undeveloped in spite of the huge potentials that exist in this sector. This is the sector that holds the key to Nigeria economic diversification and the earlier Mr. President steps in to salvage what is remaining of this sector the better for us and the generation coming after us. As things now stand, we have no other alternative to the proposed standing Presidential Committee for mining to revamp this sector.

How closely have you worked with the National Assembly to address the issues raised with regard to the implementation of the law?

We have worked with the Committee on Mining very closely at the House of Representative and we know that they can use their oversight functions in Nigeria mining development to ensure that all stakeholders play according to the rules of the game.

On behalf of Nigeria miners I am appealing to them as major stakeholders in the Nigeria mining sector to demonstrate more commitment and patriotism toward this sector.

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